| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 10.5% | 4.9% | 16.0% |
| 2025 |
|---|
| 16.0% |
Palm Harbour Capital delivered 4.9% in Q4 2025, bringing full-year returns to 16% in euros. The fund maintains its value-oriented approach, focusing on cash-generative businesses trading at sensible valuations with a weighted average P/E of 8.1x and FCF/EV yield of 15%. Top contributors included Loma Negra, which surged following President Milei's electoral victory in Argentina, and Atalaya Mining, benefiting from favorable copper market dynamics. The manager actively managed the portfolio tail, exiting positions with governance concerns including Playtech due to corporate espionage allegations. New investments included Converge ICT, a Philippines fiber-optic broadband company positioned to benefit from low penetration rates and regulatory changes. The fund remains index-agnostic amid market conditions reflecting elevated greed and concentration in AI-related equities. With the portfolio showing over 95% upside to estimated NAV, management expresses extreme optimism about prospects and believes this represents a great time to be a value investor focused on medium-term opportunities.
Focus on cash-generative businesses trading at sensible valuations while remaining index-agnostic and disciplined amid market conditions reflecting elevated greed and extreme short-termism.
Manager is extremely optimistic about portfolio prospects and believes they will reach compounded annual return aspiration over time. They continue to believe this is a great time to be a value investor and are very excited about medium-term prospects for the current portfolio.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 20 2026 | 2025 Q4 | 001910.KS, 047440.KS, 086280.KS, 6345.T, ASLI.L, ATYM.L, BSRT, BWO.OL, CIR.MI, CNVRG.PS, DAN.MI, DITO.PS, FLRY3.SA, GLO.PS, KRI.AT, LOMA.BA, MDIA3.SA, PTEC.L, SGF.MI, TEL.PS, TRE.OL, VIV.PA, WOSG.L, WWI.OL | Argentina, Broadband, Cash Generation, Copper, global, Governance, Steel, value |
LOMA ATYM LN 012030 KS DAN IM RHIM LN 6345 JP KRI GA 284740 KS VIV FP BRSL |
Fund focuses on cash-generative businesses trading at sensible valuations with weighted average P/E of 8.1x and FCF/EV yield of 15%. Manager emphasizes being index-agnostic and… |
| Nov 13 2025 | 2025 Q3 | 009970 KS, ADM, ATYM LN, BRSL, CALT IM, GSMI PM, LOMA, ODET FP, PRT IM, RHIM LN, TISG IM | AI | - | The global equity narrative remains narrowly focused on AI, overshadowing traditional macro factors and broad equity valuations. The letter raises concerns about potential AI overinvestment… |
| Aug 5 2025 | 2025 Q2 | - | asset protection, Balance Sheets, forced selling, small caps, value | - | The letter highlights deep value opportunities created by forced selling, style rotations, and indiscriminate risk aversion in small and micro-cap equities. Management stresses balance sheet… |
| Apr 22 2025 | 2025 Q1 | 5482 JP, IGT, JST GR, LTMC IM, NOEJ GR, OCN LN, ODET FP, PPA GA, SUI SJ, TISG IM, VRLA FP | - | - | - |
| Mar 5 2025 | 2024 Q4 | 9404 JP, GSMI PM, IGT, KTMC IM, OCN LN, ODET FP, PPA GA, PRT IM, TKA AV | - | - | - |
| Oct 16 2024 | 2024 Q3 | 327 HK, EVRI, GSMI PM, IBST LN, IGT, KRI GA, MDIA3 BZ, MEOH, OCI NA, OCN LN, UNIR IM, VARRY, VRLAF | - | - | - |
| Jul 29 2024 | 2024 Q2 | 0FHO LN, CED IM, DAL LN, GSMI PM, IGT, LNA FP, OCI NA, PPA GA, SOLB BB, TKA AV, WIX LN | - | - | - |
| Apr 15 2024 | 2024 Q1 | 0NV0 LN, 9404 JP, 9824 JP, EVRI, HAT LN, IGT, OCN LN, SYENS BB, TISG IM | - | - | - |
| Jan 31 2024 | 2023 Q4 | 200 HK, 6523 JP, BAYRY, EXCO32 BZ, IGT, LNA FP, OCN LN, RHIM LN, SOLB BB, TKA AV | - | - | - |
| Oct 30 2023 | 2023 Q3 | - | - | - | - |
| Aug 8 2023 | 2023 Q2 | 086280 KS, 200 HK, 4966 JP, IGT, LNA FP, LTMC IM, MTX GR, OCI NA, PRT IM, RHIM LN, VARRY | - | - | - |
| Apr 23 2023 | 2023 Q1 | 0NFS LN, CED IM, CIRC IM, DAN IM, GSMI PM, IGT, IHRT, OCI LN, TEZ GR, TKA AV, VARRY | - | - | - |
| Nov 2 2023 | 2022 Q4 | BOAVSTB BZ, CALT IM, IBST LN, IGT, IHRT, JST GR, LNA FP, MOH GA, MTX GR, RHIM LN, VRLA FP | - | - | - |
| Nov 15 2022 | 2022 Q3 | 4966 JP, BAYA GR, GPL SJ, GSMI PM, HAT LN, IGT, MHZ GR, OCI NA, ODF GR, RHIM SW, UNIR IM | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
ArgentinaLoma Negra was top contributor at 122 bps following President Milei's landslide electoral victory and $40 billion US financial support package. Manager maintains positive view on Argentina's leading cement producer with significant upside potential as economic normalization takes hold. |
Argentina Politics Cement Infrastructure Reform |
BroadbandDetailed analysis of Converge ICT, Philippines fiber-optic broadband company with extensive network coverage. Company positioned to benefit from low broadband penetration and regulatory changes while transitioning from capex-heavy expansion to cash generation phase. |
Broadband Fiber Philippines Telecommunications Infrastructure | |
CopperMarket shifted from deficit to surplus as Chinese demand stalled for first time in 25 years while supply expanded by 3 million tonnes since 2021. Exchange inventories reached 1.2 million tonnes, highest since 2003. Bearish outlook as China transitions from under-consuming to over-consuming copper. |
Base Metals China Inventories Surplus | |
SteelArcelorMittal, the European and Indian steel company, has been a major contributor to the fund's performance in 2025 and continues to be held in the portfolio. |
Steel ArcelorMittal Materials Europe India | |
ValueManager emphasizes investing in controlled companies trading at significant discounts to NAV, with European holding companies showing discounts of 30-68%. The strategy focuses on securities mispricing where real value exists, contrasting with overvalued technology stocks. |
Discounts NAV Mispricing Undervalued Controlled | |
| 2025 Q3 |
AIThe extended federal government shutdown added volatility during what was otherwise a risk-on environment, with a mid-quarter shift in market behavior for AI-related equities as the exuberant narrative evolved to one more balanced in assessing the technology's enormous potential against staggering capital spending plans and high expectations. The team initiated a position in Credo Technology as a more diversified way to gain exposure to strong trends in AI-connectivity. |
Connectivity Semiconductors Infrastructure Capital Spending |
| 2025 Q2 |
ValueThe manager continues to find attractive value opportunities despite expensive markets, purchasing undervalued companies like Centene, GlaxoSmithKline, Carrefour and PayPal trading at low multiples with strong fundamentals. |
Undervalued Low Multiples Contrarian Opportunistic |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jan 20, 2026 | Fund Letters | Peter Smith | LOMA | Loma Negra C.I.A.S.A. | Materials | Construction Materials | Bull | New York Stock Exchange | Argentina, cashflow, Cement, infrastructure, recovery | Login |
| Jan 20, 2026 | Fund Letters | Peter Smith | ATYM LN | Atalaya Mining Plc | Materials | Copper Mining | Bull | New York Stock Exchange | cashflow, Copper, Electrification, growth, Mining | Login |
| Jan 20, 2026 | Fund Letters | Peter Smith | 012030 KS | Youngone Corporation | Consumer Discretionary | Apparel Manufacturing | Bull | New York Stock Exchange | Apparel, cashflow, Margins, Oem, recovery | Login |
| Jan 20, 2026 | Fund Letters | Peter Smith | DAN IM | Danieli & C Officine Meccaniche S.p.A. | Industrials | Industrial Machinery | Bull | Borsa Istanbul | backlog, Industrials, infrastructure, machinery, Steel | Login |
| Jan 20, 2026 | Fund Letters | Peter Smith | RHIM LN | RHI Magnesita N.V. | Materials | Construction Materials | Neutral | New York Stock Exchange | cashflow, Cyclicality, Overcapacity, Refractories, Steelcycle | Login |
| Jan 20, 2026 | Fund Letters | Peter Smith | 6345 JP | Aichi Corporation | Industrials | Construction Machinery & Heavy Trucks | Bear | New York Stock Exchange | buybacks, Capitalallocation, Control, Governance, Suppliers | Login |
| Jan 20, 2026 | Fund Letters | Peter Smith | KRI GA | Kri-Kri Milk Industry S.A. | Consumer Staples | Packaged Foods & Meats | Neutral | New York Stock Exchange | Dairy, Exports, growth, Margins, valuation | Login |
| Jan 20, 2026 | Fund Letters | Peter Smith | 284740 KS | Cuckoo Homesys Co., Ltd. | Consumer Discretionary | Household Appliances | Bull | New York Stock Exchange | Appliances, dividends, expansion, Margins, Workingcapital | Login |
| Jan 20, 2026 | Fund Letters | Peter Smith | VIV FP | Vivendi SE | Communication Services | Media | Bull | Euronext Stock Exchange | arbitration, Catalysts, Holdingcompany, Navdiscount, restructuring | Login |
| Jan 20, 2026 | Fund Letters | Peter Smith | BRSL | Brightstar Lottery PLC | Information Technology | Data Processing & Outsourced Services | Bull | New York Stock Exchange | buybacks, cashflow, Contracts, Lottery, rerating | Login |
| TICKER | COMMENTARY |
|---|---|
| 001910.KS | The third significant contributor was Youngone (+22.5%, +71 bps), the South Korean apparel manufacturer business with a bike business attached to it, introduced in our third quarter 2025 letter. The share price has skyrocketed since the release of our third-quarter 2025 shareholder letter after Youngone reported 12.9% year-on-year growth in its OEM business, with operating margins improving by 140 basis points to 23.4%. |
| 047440.KS | The second largest detractor was Cuckoo (-12.3%, -36 bps), the South Korean rice cooker manufacturer which we introduced in our second quarter 2025 letter. Sales continue their positive trajectory adding 19.8% year-on-year in the third quarter 2025. Operating margins improved by 140 bps compared to the third quarter 2024 and remain high on a three-year average. |
| 086280.KS | Notably, three of the top 10 contributors for the year – Hyundai Rotem, Poongsan, and Hanwha Aerospace – collectively added over 11.0% to annual performance. |
| 6345.T | We exited our position in Aichi (6345 JT), the Japanese manufacturer of aerial work platforms, after becoming increasingly dissatisfied with the actions of its former parent, Toyota Industries. Rather than taking the company private or distributing their stake to the market, Toyota Industries chose to sell a portion to Itochu and another portion back to Aichi through a share buyback—while still retaining a significant holding. |
| ASLI.L | Likewise, we sold our stake in Aberdeen European Logistics Income Plc (ASLI LN), an investment trust that owns industrial property in Europe, as it announced its liquidation due to a prolonged time trading well below NAV. |
| ATYM.L | The second largest contributor was Atalaya Mining (+36.4% +84 bps), the Spanish pure play copper producer. Atalaya Mining's shares rallied strongly, driven by sustained copper production growth (+1.9% year-on-year in Q3 2025) amid a favourable pricing environment, reportedly the largest annual copper price increase in over a decade. |
| BSRT | The fourth detractor was Brightstar Lottery (-9.2%, -28 bps), the Italian-American lottery technology systems provider, which we introduced in our first quarter 2020 letter and updated in our first quarter 2024 letter. As per our November 2025 update, Brightstar Lottery reported positive third quarter results for both sales and EBITDA while also introducing its mid-term outlook of 6% annualised EBITDA growth and improved cash generation over the next three years. |
| BWO.OL | BW Offshore (BWO NO), a company that we have followed for years, announced a strategic review and with the share price not moving, we took the opportunity to start a small position. |
| CIR.MI | Our long-time holding, Cie Industriali Riunite (CIR IM), announced that they were buying the 40.23% stake in KOS SpA, that they did not own from their private equity partners F2i Fondi Italiani. KOS SpA is an Italian and German nursing home company. The €250 million price tag (€220 million upfront and €30 million contingent) seems reasonable, and is a good use of the €360 million of cash sitting at the holding company level. |
| CNVRG.PS | Converge ICT is a Philippines-based telecommunications company specializing in high-speed fiber-optic broadband internet. Originally established in 1996 by Dennis Anthony Uy, Converge is today the fastest-growing telco in the country. The company owns an extensive network of 896,000 kilometers of fiber optic assets nationwide including domestic subsea cables, covering hundreds of cities and municipalities across major islands. |
| DAN.MI | Danieli, a company based in Northern Italy that specializes in manufacturing steel plants, as well as producing specialist steels. The Fund owns the savings shares which trade at a 28% discount to the ordinary shares. The savings shares have generated a return of 119% for the Fund in 2025. Despite this strong performance, after stripping out the company's excess net cash position the shares trade at 7.5x 2026 estimated earnings. European Commission proposals to safeguard European steel production as well as carbon costs on imports to disadvantage steel produced from high-emission energy sources, has led to a surge in demand for Danieli's energy efficient and hydrogen-ready steel plants. This is demonstrated by Danieli's elevated order book and increasing profitability. |
| FLRY3.SA | We purchased Fleury (FLRY3 BS), a leading Brazilian medical diagnostics business. |
| KRI.AT | Our final sale was of our successful investment in Greek yoghurt manufacturer Kri-Kri (KRI GA), which has contributed 369 bps to performance. We purchased the shares in March 2023 when the margins were decimated by inflation, and they were unable to pass on the costs in the very short-term due to annual contracts with their large supermarket customers. As contracts renewed, they were easily able to raise prices and restored margins (and even increased them) and volumes continued to boom. |
| LOMA.BA | The top contributor during the quarter was Loma Negra (+75.6%, +122 bps), the largest Argentinian cement producer, which completely erased the losses of the previous quarter. Loma Negra's share price performed strongly following Argentina's midterm legislative elections on October 26, 2025, in which President Javier Milei secured a landslide victory. |
| MDIA3.SA | The fifth largest detractor was M Dias Branco (-16.8%, -27 bps), the Brazilian market leader in cookies, crackers and pasta, which we introduced in the third quarter 2024 letter. M. Dias Branco reported results that were softer than anticipated on the profitability front, despite a solid 16% year-on-year increase in net revenue and easing commodity costs. |
| PTEC.L | The first was Playtech (PTEC LN). We had long held reservations following the egregious management compensation awarded after the sale of their Italian business. This was followed by a substantial tax increase announced in Mexico, which will negatively affect Caliplay—where Playtech owns a 30.8% stake and which is also a key client. The final catalyst came when Playtech was accused in court of hiring a private investigator who secretly recorded a competitor, Evolution, allegedly admitting to criminal activity. |
| TRE.OL | Our long-time holding in Treasure (TRE NO), a holding company which only owned a 10% stake in listed Hyundai Glovis (086280 KS), came to an end when parent company Wilh. Wilhelmsen Holding ASA (WWI NO) purchased a 10% block from the last major holdout, Nordea, and paid the minorities to de-list the company. The 13% discount received was not bad, given we purchased it with a 40% discount, and the stock appreciated in local currency 293% plus NOK5.8 dividends over our holding period. Overall contribution to the fund was 308bps. |
| VIV.PA | Concerns over regulatory difficulties across group companies |
| WOSG.L | The fifth largest contributor was Watches of Switzerland (+29.5% +62 bps), the British dealer of luxury watches and Rolex's most important authorized dealer. Again, political developments helped sentiment after US tariffs on Swiss goods officially reduced to 15% (from 39%)—a move applied retroactively from mid-November 2025 that provides meaningful relief for Swiss watch exports. |
| WWI.OL | The Fund's investment in Wilh. Wilhelmsen Holding (WWI) is split between the A and B shares. On average, the shares increased 67% in USD during 2025, whilst the discount to NAV narrowed marginally from 52% to 48%, the return was generated predominantly through growth in NAV. WWI is the holding company of the Wilhelmsen family. Its main investments are a 38% stake in Wallenius Wilhelmsen and an 11% holding in Hyundai Glovis which make up 36% and 23% of WWI's net asset value respectively. We believe that the wide discount to NAV at which WWI trades provides a margin of safety whilst maintaining exposure to a high-quality operator with long-term contracts that remains highly cash generative. The Wilhelmsen family have been involved in the car carrier industry for five generations and understand the highs and the lows of the industry. At a 48% discount to NAV, WWI remains a top holding for the Fund. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
|---|---|---|---|---|---|
| No Recent Buys Data | |||||
| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
|---|---|---|---|---|---|---|
| No Recent Sells Data | ||||||
| Industry | Prev Quarter % | Current Quarter % | Change |
|---|---|---|---|
| No industry data available | |||
